Is Porsche Still a Sports Car Company?

By Vanessa Fuhrmans

LEIPZIG, Germany—As Porsche maneuvers deeper into the markets for SUVs and sedans, it is racing to remind a new generation of drivers what gave the brand its original mystique—speed.

The brand has unnerved purists in recent years, first with the launch of its hulking Cayenne sport-utility vehicle, then a four-door sedan called the Panamera. Though the expansion has boosted the Volkswagen AG-owned car maker’s sales by nearly 50% over the past four years, the Cayenne and Panamera made up roughly three-quarters of its 143,000 vehicle sales last year.

Next year, Porsche takes yet another big step from its sports-car roots with a new compact SUV. Chief Executive Matthias Müller says it could add up to 75,000 to its annual sales—further eclipsing Porsche’s legendary 911, Boxster roadster and its hard-topped sibling, the Cayman. The company also is weighing developing a smaller version of the Panamera.

“If the sports cars get drowned out, they risk killing the golden goose,” says Mark Ritson, an associate professor of marketing at the University of Melbourne’s business school who has consulted for luxury brands. A happy Cayenne owner, Mr. Ritson counts himself as one of the thousands of decidedly nonsports-car drivers Porsche has lured with its model expansion. But the powerful SUV “is so far from a [911] Carrera, it is unbelievable,” he adds. “It is a big, fat people-mover.”

Porsche is turning to measures unusual for a car maker known for its minimalist marketing efforts to keep that adrenaline-pumping connection alive. It is returning to the 24 hours of Le Mans race next year and building “experience” centers in Shanghai, Atlanta and Los Angeles aimed at cultivating sports-car aficionados with on- and off-road test tracks and driving courses. It also has stepped up Porsche roadshow events.

“I’m convinced we have to do something to keep our brand image high, and these kinds of measures are helping do that,” said Mr. Müller in a recent interview at the company’s Stuttgart headquarters.

A longtime veteran of German luxury-car maker Audi and its parent Volkswagen, which completed a protracted takeover of Porsche last year, Mr. Muller has implemented many of the moves since becoming CEO in late 2010.

Porsche’s efforts underscore the tricky balancing act niche car makers face in leveraging their brands to fuel growth and finance ever-costlier technologies without diluting them in the process. Even as it pushes toward a target of 200,000 cars in annual sales by 2018, every Porsche that rolls off the company’s German assembly lines is custom-built to each buyer’s wishes, down to the stitching of its leather interior.

Comments (5 of 9)

John S -- you need to do a little more research to uncover the full story of the failed attempt by Wendle Weikind to pull off a highly leveraged buyout of VW. It almost worked and then blew up. But whether the Porsche Family or the Piech Family owns the 2 companies doesn't matter. Porsche will still continue to be a great Engineering company that makes and races cars.

........ and a Cayenne is hardly a "Big Fat SUV" as others have said the writer should actually drive one I would suggest somewhere OTHER than NYC like say... Montecello. ( OK, yes, I own both a GT3 and a Cayenne GTS. so maybe i'm not impartial ... but a I am their target buyer )

11:25 am June 5, 2013

BobZ wrote :

Porsche understands sports cars, finance and politics. They are leveraging their engineering expertise over a wider range of products. A mini SUV will make a profit, which will support the engineering required for the next 911. The Panamera S E-Hybrid will help make the fleet emissions numbers needed to meet state and federal regulations. If, in the future, you see something with a Porsche badge that looks like a Fiat 500 with a 1 liter 4 cylinder boxer engine, just think of it as something that keeps the 911 series on the road and in the low six figures.

5:15 pm June 3, 2013

CM wrote :

This saddens me greatly. I'm not a car guy, but have loved Porsche since being a little kid in the '70s...for their racing heritage and sports cars, not four door people movers. I have a much-loved 928 in my garage, so I'm not even a purist.

I guess it's time to find another passion for the back half of my life.

4:13 pm May 31, 2013

JohnS wrote :

Oops, looks like I was mistaken. This seems odd, though, as Porsche bought 49.9% of VW in 2009, then created an integrated company. So, how exactly does VW then buy out 50.1% of Porsche?